Damco releases optimization tool

Monday, November 26, 2012

The freight forwarder and third party logistics services company Damco said Monday it has released a new optimization tool aimed at vastly reducing the amount of time it takes a shipper to make changes to its supply chain.
The tool is meant to be seen as the strategic lever for the company’s Damco Dynamic Flow Control, a product it released earlier in 2012.
“A prerequisite for supply chain excellence is that you can evaluate supply chain performance, simulate your different options very quickly while understanding implications to cost, service levels, lead time and capacity and translate your findings into specific actions on a day to day level,” Damco said.
The optimization tool is designed to target:

How much inventory is needed to meet desired service levels.

Where should inventory be kept (at origin, in transit, at destination).

How many warehouses or distribution centers are needed and where they should be located.

When to phase in/out warehouse capacity over the coming years.

Which transportation mode, container and truck type is optimal from a cost, service and carbon perspective.

“A more quick, thorough and holistic approach to supply chain design and optimization is key to operate in a world of constant change,” said Erling Johns Nielsen, global head of supply chain development at Damco, in a statement. “You can have the best supply chain concept in the world. However, without being able to adapt to change while having access to experienced supply chain professionals located close to your supplier and customer base, who can implement and execute the change on a daily basis, you will not reap the full benefits."
Damco is a subsidiary of the A.P. Moller-Maersk Group. - Eric Johnson